Points to consider before you commit to an indexed universal life plan

IF YOU are in the market for an indexed universal life (IUL) plan, here are some things to consider. Since the policy value and commitment are large, it is important that to seek advice and revisit the plan periodically. If you are paying via a multi-pay mode, it is also important to ensure that you are able to consistently fund the premiums to prevent the policy from lapsing.

Be clear about your objectives

Havend chief executive Eddy Cheong said ULs and IULs help to create an estate in the event of death. “The payout is in the form of cash that can be easily distributed, unlike certain assets like properties and jewellery,” he said.

This is why such policies are used to equalise the distribution of an estate among heirs. The policies also help to provide stability to an estate as the death benefit can be determined, he added.